Corridor Prepares to Fracture Frederick Brook Formation

Corridor Resources is preparing to conduct two propane fracs in the upper part of the Frederick Brook formation at the Green Road G-41 (vertical) well. The well is located approximately 20 kilometers east of the McCully gas plant and 4 kilometers north of the village of Elgin in southern New Brunswick. The first of the two fracs is to be conducted in a black shale interval at a depth between 2000 and 2050 meters. The second frac is to be conducted at a depth between 1850 and 1900 meters in a silty interval of the formation containing thin interbeds of sandstone. The fracturing operations are planned to be conducted later this month, immediately followed by flow testing of the well. Initial results from these operations are expected to be made available by early November. Encouraging results from these operations may lead to the drilling of an adjacent horizontal well (including multi-stage fracturing and flow testing operations) in 2010.

In other operations, Corridor is continuing to flow test the recently completed McCully L-38 and P-47 wells. The wells are currently producing in-line to the gas plant at constrained rates in the range of 5 to 6 mmscf/day each to assess their respective longer term flow performances. The two wells each exhibited initial production capacities of approximately 10 mmscf/day based on initial flow test results (reported by Corridor in a press release dated September 9, 2009). However, in the case of the P-47 well, early pressure response suggests the well may decline at a more rapid rate than normal for most McCully wells. The field is currently producing at an average gross rate of approximately 28 mmscf/day (23 mmscf/day net to Corridor, with the McCully J-38, D-67 and N-66 wells temporarily suspended for workover operations.